Friday, February 19, 2016

Teacher's Salary Hike First Tranche Approved

More than 370,000 public school teachers in elementary and in the secondary would be enjoying the salary hike which its first tranche may be effected in the first quarter of this year as PNoy has already signed the Executive Order No. 201, s. 2016 to implement this increase in four installments upon returning from working trip in the US.

President Benigno Aquino III after attending the ASEAN-US Summit and meeting with US business leaders signed Executive Order to implement the increase of government employees to include the teachers of the Department of Education and the controversial military and PNP pensioner's hike.

Department of Budget and Management (DBM) recommended the issuance of an EO following Congress’ failure to approve the proposed Salary Standardization Law (SSL) IV before they adjourn session for the election campaign.

The bicameral conference committee was in an apparent impasse over the indexation provision that would cover the pension of military and uniformed personnel retirees.

Implementation Rationale

President Communication Secretary Herminio Coloma, Jr. in a statement said that the EO provides for the implementation of the first of the four tranches provided for in the proposed [Salary Standardization Law of 2015] or SSL 4 that has not been enacted by Congress.

He said further that authority to implement the first tranche is given in RA 10717 (or the 2016 General Appropriations Act) which provides a budget of P57.9 billion.

Now more than 4790,000 government workers would benefit this increase in 2016.

Equal Pay for Work for Equal Value

The Executive Order No. 201, s. 2016 has provided the following:

a) Raise the minimum salary for Salary Grade 1 from the current rate of Nine Thousand Pesos (P9,000) to Eleven Thousand Sixty Eight Pesos (P11,068) to make it even more competitive with the market rates;

b) Bring the compensation of government personnel closer to their private counterparts to at least 70% of the median of the market for all salary grades;

c) Eliminate overlaps in between salary grade allocations of government personnel to recognize differences in duties and responsibilities of the positions;

d) Maximize the net take home pay of government personnel through the inclusion of additional benefits; and

e) Strengthen the performance-based incentive system in recognition of government personnel who play a greater role and carry a heavier responsibility in attaining performance targets and delivering results.

Implementing Schedule:

  1. Starting January 1, 2016, the first tranche salary schedule for civilian personnel and the first tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for MUP, together with the Mid-Year Bonus.
  2. By January 1, 2017, the second tranche salary schedule for civilian personnel and the second tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for MUP, the Mid-Year Bonus and half of the enhanced PBB;
  3. By January 1, 2018, the third tranche salary schedule for civilian personnel and the third tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for MUP, the Mid-Year Bonus and full amount of the enhanced PBB; and
  4. By January 1, 2019, the fourth tranche salary schedule for civilian personnel and the fourth tranche Provisional Allowance, Officers’ Allowance and Hazard Pay for MUP, the Mid-Year Bonus and the full amount of the enhanced PBB.


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